UAE Regulator Requires SEC Probe into Cardi B-Promoted WAP Token

• UAE SCA seeks SEC probe into $WAP token for securities violations.
• WAP promoted by Cardi B allegedly concerned in a pump-and-dump scheme.
• Investigators pinpoint KOLs, insiders in orchestrating value manipulation.

The UAE Securities and Commodities Authority (SCA) formally requested the U.S. Securities and Alternate Fee (SEC) to research the WAP cryptocurrency token promoted by Cardi B on the Solana blockchain, alleging potential securities violations.

The WAP token, closely promoted by Cardi B on X (previously Twitter), has been linked to an alleged pump-and-dump scheme probably involving insiders. The SCA’s request follows a tip-off from Dubai-based enterprise capital companies and Emirati buyers who raised issues about fast value manipulation. The token’s buying and selling quantity skilled a pointy surge and subsequent drop inside a brief interval, suggesting coordinated fraud.

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A tweet by Syed Sameer, CEO of a Dubai-based enterprise capital agency, supplied extra particulars concerning the grievance, explaining how influencers, key opinion leaders (KOLs), and insiders might need manipulated WAP’s value for private achieve by way of unethical monetary preparations. The SCA’s investigation facilities on this alleged coordinated manipulation between influencers and people concerned in selling the token.

The WAP token acquired in depth promotion by way of X, attracting appreciable consideration. Promotions have been led by paid KOLs, insiders, and celebrities like Cardi B, who allegedly acquired undisclosed monetary compensation within the type of tokens.

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Investigations confirmed that the scheme artificially inflated the worth of WAP earlier than promoters and insiders bought their holdings, leading to substantial losses for retail buyers. Proof from Bubblemaps and WazzCrypto factors to unethical bundling of provide and value manipulation. Key accounts linked to the scheme embody KOLs reminiscent of @The__Solstice, @KookCapitalLLC, and @WazzCrypto, all of whom participated within the alleged pump-and-dump exercise.

The SCA claims these actions violate each U.S. and UAE securities legal guidelines and is in search of cooperation from regulators and X to trace IP addresses and logs of implicated promoters. The SCA’s request, primarily based on proof of coordinated manipulation, underscores the dangers of unregulated crypto promotions by celebrities and social media influencers.